Slide 1: Fourth Quarter 2020 Earnings Summary
Fourth Quarter 2020 Earnings Summary February 16, 2020
Slide 2: Safe Harbor
Safe Harbor Use of Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include information, among other things, concerning: the expected impact of the COVID-19 pa
Slide 3: Fourth Quarter Key Metrics
Fourth Quarter Key Metrics 166K 1.36 GW Inverters Shipped 3.6M Systems Shipped Power Optimizers Shipped $358.1M Revenues 3
Slide 4: Annual Key Metrics
Annual Key Metrics 662K 6.1 GW Inverters Shipped 15.5M Systems Shipped Power Optimizers Shipped $1,459.3M Revenues 4
Slide 5: Financial Results for Quarter
Financial Results for Quarter Revenue of $358.1 million Revenue from solar products of $327.1 million Total cash and investments, net of debt, $530.2 million GAAP gross margin of 30.8% Non-GAAP gross margin of 32.5% Non-GAAP gross margin for the solar business of 36.2% GAAP operating income of $14.4
Slide 6: 2020 Highlights
2020 Highlights Record revenue of $1.5 billion Record revenue from solar products of $1.4 billion GAAP gross margin of 31.6% Non-GAAP gross margin of 33.0% GAAP operating income of $142.6 million Business highlights for the year 6.1 Gigawatts AC inverters shipped 15.5M power optimizers and 662K inve
Slide 7: Noteworthy
Noteworthy Record annual revenues for both solar and non solar businesses, a slight increase from 2019, despite worldwide impact of global pandemic Quarterly revenue driven by strong residential sales in U.S. and record revenue outside of the U.S. and Europe Record annual solar revenue in Europe and
Slide 8: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results *USD in millions Q4 19 Q3 20 Q4 20 Revenues 418.2 338.1 358.1 Gross margin 34.3% 32.0% 30.8% Operating expenses 92.7 ** 77.7 95.9 ** Operating income 50.5 30.4 14.4 Net income 52.8 43.8 17.7 Net diluted earnings per share 1.03 0.83 0.33 * With the exception of gross
Slide 9: GAAP Yearly Financial Results
GAAP Yearly Financial Results *USD in millions 2018 2019 2020 Revenues 937.2 1,425.7 1,459.3 Gross margin 34.1% 33.6% 31.6% Operating expenses 179.8 289.4 ** 318.8 ** Operating income 139.4 189.9 142.6 Net income 128.8 146.5 140.3 Net diluted earnings per share 2.69 2.90 2.66 * With the exception of
Slide 10: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results *USD in millions Q4 19 Q3 20 Q4 20 Revenues 418.2 338.1 358.1 Gross margin 35.5% 33.5% 32.5% Operating expenses 63.1 63.2 72.9 Operating income 85.3 50.0 43.5 Net income 87.4 65.9 55.7 Net diluted earnings per share 1.65 1.21 0.98 * With the exception of gross ma
Slide 11: NON-GAAP Yearly Financial Results
NON-GAAP Yearly Financial Results *USD in millions 2018 2019 2020 Revenues 937.2 1,425.7 1,459.3 Gross margin 34.6% 34.9% 33.0% Operating expenses 150.1 220.9 263.5 Operating income 174.3 276.8 218.8 Net income 157.3 233.2 224.4 Net diluted earnings per share 3.17 4.44 4.11 * With the exception of g
Slide 12: Units Shipped
Units Shipped Power Optimizers Shipped Inverters Shipped 5,060 4,587 202.0 4,454 187.9 186.8 3,731 160.1 165.7 3,516 3,614 152.5 3,272 141.7 3,134 3,029 130.7 120.5 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 K Units 12
Slide 13: Quarterly Revenue
Quarterly Revenue 431.2 418.2 358.1 331.9 338.1 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 USD Millions 13
Slide 14: Gross Margin Trend by Quarters (%)
Gross Margin Trend by Quarters (%) GAAP Non-GAAP 35.5% 34.3% 32.5% 33.6% 33.5% 32.0% 32.4% 32.5% 31.0% 30.8% Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 14
Slide 15: Solar Gross Margin Trend by Quarters (%)
Solar Gross Margin Trend by Quarters (%) GAAP Non-GAAP 37.3% 37.8% 36.2% 35.3% 34.6% 35.0% 34.8% 34.1% 33.8% 33.1% Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 15
Slide 16: Consolidated Operating Expenses
Consolidated Operating Expenses GAAP Non-GAAP 26.8% 0.4% 22.2% 22.0% 23.0% 5.0% 20.4% 4.4% 18.4% 18.7% 5.4% 16.8% 4.2% 4.0% 8.1% 15.1% 15.4% 3.5% 3.5% 2.8% 3.8% 6.5% 6.3% 3.3% 3.0% 5.6% 5.2% 5.2% 5.7% 5.6% 4.9% 4.8% 12.1% 13.3% 11.5% 10.8% 8.3% 8.5% 9.7% 10.0% 7.2% 7.3% -1.1% Q4 19 Q1 20 Q2 20 Q3 20
Slide 17: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 85.3 67.8 78.6 50.5 50.0 46.6 43.5 30.0 30.4 14.4 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 USD Millions 17 * GAAP Q4 20 ,Q1 20 and Q4 19 include nonrecurring operating expenses (income) of $1.5M, ($4.9M) and $22.4M respectively
Slide 18: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 52.8 87.4 43.8 42.2 65.9 36.7 55.7 50.7 52.1 17.7 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 USD Millions 18 * GAAP Q4 20 ,Q1 20 and Q4 19 include nonrecurring operating expenses (income) of $1.5M, ($4.9M) and $22.4M respectively
Slide 19: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q4 19 Q3 20 Q4 20 Cash and investments 467.5 1,201.9 1,181.0 Total Debt* 15.8 648.1 650.8 Cash and Investments Net 451.7 553.8 530.2 of Debt Inventory 170.8 297.0 331.7 Capital Expenditures 32.9 36.4 35.5 Cash Flow From Operations 83.1 28.4 27.0 * The majori
Slide 20: First Quarter Guidance
First Quarter Guidance Revenue to be within the range of $385 million to $405 million; Non-GAAP gross margin expected to be within the range of 34% to 36%; Revenue from solar products to be within the range of $360 million to $375 million; Non-GAAP gross margin from sale of solar products expected t
Slide 21: Appendix
Appendix solar,
Slide 22: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Year ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Gross profit (GAAP) 110,325 108,063 143,249 461,359 479,338 Stock-based compensation 3,720 2,730
Slide 23: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Year ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Operating expenses (GAAP) 95,898 77,669 92,721 318,798 289,392 Stock-based compensation -
Slide 24: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial expenses (income), net Three months ended Year ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Financial expenses (income), net (GAAP) (10,380) (15,765) (11,058) (21,105)
Slide 25: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended Year ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income attributable to Solaredge Technologies Inc. (GAAP) 17,655 43,751 52,778 140,322 146,549
Slide 26: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended Year ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net basic earnings per share (GAAP) 0.34 0.87 1.08 2.79 3.06 Cost of product adjustment ---- --
Slide 27: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS Three months ended Year ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net diluted earnings per share (GAAP) 0.33 0.83 1.03 2.66 2.90 Cost of product adjustment ---
Slide 28: NASDAQ | SEDG
NASDAQ | SEDG solar,